Apartment Secured with a Down Payment from Mother-in-Law’s Retirement Pay Soars from 600 Million to 1.8 Billion Won... Husband in Divorce Suit: “Let’s Split It 50-50 Based on Prices from Three Years Ago” [This Law]

[Financial News]  A woman’s story has come to light: after an apartment whose down payment her mother had provided by dipping into her retirement pay rose in value nearly threefold, the woman’s husband, who is in the midst of divorce proceedings, reportedly demanded that they divide their assets based on market prices from three years ago, when their relationship soured.
On the 4th, YTN Radio’s “Attorney Jo In-seop’s Counseling Center” featured the story of a woman identified as A, who had been married for seven years.
A, who has an elementary-school-aged son, began by saying, “My husband is from a rural area and met me while working in Seoul. He grew up in a poor environment and was especially fixated on money.”
The couple, who registered their marriage in 2019 and had their first child, reportedly won the right to purchase an apartment in Seoul through the special supply program for newlyweds.
A said, “The apartment’s purchase price was 600 million won, but we were short 60 million won for the down payment. That’s when my mother dipped into her retirement pay to provide the money for it. My husband said it would be easier for him to get a loan because he was an office worker, so he contracted for the apartment in his name and also took out a loan for the interim payments.” She recalled, “He said he finally had a home in Seoul and had realized his dream. When he said it was thanks to having a good wife, I was happy too.”
But she said her husband’s attitude changed as housing prices rose.
A said, “After work, he started spending all his time glued to real estate YouTube channels, and at some point he was constantly saying, ‘This is my house.’ Then he got hooked on cryptocurrency YouTube shows. In 2022, without even consulting me, he borrowed 300 million won against the apartment and invested it in cryptocurrency, losing almost all of the money.”
A eventually filed for divorce in early 2023, and the apartment’s value rose sharply as the lawsuit dragged on.
A said, “While the lawsuit continued into its third year, the apartment’s move-in process was completed. It was worth around 900 million won when we started the lawsuit, but now it’s worth nearly 1.8 billion won. Then my husband said, ‘We fell out in 2022, so we should divide our assets based on market prices at that time.’ He also said that if we sold the apartment, we would owe capital gains tax, so we should deduct that tax in advance.”
She continued, “He even said we should calculate the value using the official assessed price, not the actual market price. He said the 60 million won my mother contributed for the down payment was money given to us as a couple, so we should split it in half, and that we should also repay together the 300 million won in debt he ran up after losing it in cryptocurrency investments he made on his own. I’m absolutely dumbfounded. What should I do?” she asked, seeking advice.
Attorney Lee Hyun-ho, who reviewed her story, explained, “If an apartment’s value rises during divorce proceedings, property is generally divided based on its market value at the time arguments conclude in the fact-finding proceedings. There is no need to deduct in advance the capital gains tax on an apartment that has not actually been sold.”
He added, “Even if the apartment is in the husband’s name, the fact that her mother provided the down payment may be recognized as a contribution when the couple’s property is divided.”
The attorney also advised, “As a rule, a debt one spouse incurs to a third party during the marriage is considered that spouse’s personal debt and is not subject to settlement unless it concerns ordinary household affairs or was incurred in connection with building joint property. It is important to obtain evidence about when the loan was taken out, whether the person seeking advice knew about it, and how the funds were used.”


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